As the nation emerges from the recession, and our relative rankings slip, the optimism 'bubble' may burst." -- Community Data Center report

As the infusion of Hurricane
Katrina rebuilding money winds down, the economy of Southeast Louisiana,
praised for its relative strength during the national recession, is about to
return to a reliance on its traditional industries, such as tourism, oil
and shipping, said a report released Tuesday by the Greater New Orleans
Community Data Center. So to stay competitive, the New Orleans, Baton Rouge and
Houma areas need to cooperate on developing a greater array of business sectors
and become an economic "super region," the report said.

The center pegged job growth
through 2020 in the three metropolitan areas at an annual 1.4 percent, behind
the 2 percent or higher expected rates in Atlanta, Austin, Houston and Raleigh.
The study credits those urban areas with diversifying their
economies.

The center says the three
Southeast Louisiana business hubs have complementary attributes that should
help grow new industries often touted by economic developers: clean technology,
digital media and biosciences. But competition in those fields is fierce
nationally and with the threat to the coastline from rising sea levels, but
coastal restoration spending also gearing up, the center said wetlands
restoration, water management and large-scale construction enterprises also could
be keys to raising the region's economic prospects.

"Business
leaders and economists generally agree that massive post-Katrina rebuilding
investments have buffered Southeast Louisiana from significant job losses
during the recession," the report says. It cited data showing the three
Louisiana cities with growth of .8 percent from December 2007 to December 2012,
while the nation lost 2.4 percent of its jobs.

"There
is a newfound energy and optimism post-Katrina that is a much-needed change
after decades of economic stagnation, meager job growth and high poverty rates,"
the report said. But, it said, "As the nation emerges from the recession, and
our relative rankings slip, the optimism 'bubble' may burst."

Baton
Rouge, New Orleans and Houma are well-positioned to work together on economic
growth, the study said, citing high numbers of commuters among the cities,
high flows of freight among the cities and shared business sectors that can
serve as building points. The study discusses existing state initiatives and
regional economic cooperation efforts that could help.

"All three regions share specializations in oil, gas and
petrochemicals; heavy construction and engineering; and shipping," the report
said. "And seven other industry specializations are shared across two of the
three metros, including waste management, ship building, higher education and
insurance agencies."

The
report provides profiles of several of the established and emerging industries. "The
region's engineers have developed specialized skills working within a
challenging coastal environment," it said.

"This
expertise can be exported to serve industries and governments in other coastal
areas," the study proposes. "The region's heavy construction firms can also
export their expertise in managing large-scale construction projects nationally
and internationally. Thus, the current economic base offers a strong foundation
for diversification."